The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-15
Collapse of the Big Wheat Corner Which
Has Been Engineered at Chicago.
The Price Declines Seventeen Cents in Short
Time, and the Board of Trade at Once Be-
comes the Scene of Wild Excitement.
The Losses of the Manipulators of the
Corner Estimated at $6,000,000.
A Number of Firms Compelled to Suspend
One of the Largest Houses Announces that
1t Will To-Day Meet All obligations.
THE WHEAT CORNER CoLLAPsEs.

THE WHEAT CORNER COLLAPsES.
An Exciting Time the Chicago Board of
Trade-Heavy Decline in Wheat.
Special to the INDIANAPOLIS journal
CHICAGO June 14-There was a wildly excit-
ing time on the Board of Trade this morning.
In less than five minutes from the opening July
wheat had made decline of 3 cents. 1t opened
at S3sc and went down to S0.c. Immense quaati-
ties unloaded on the crowd and brokers
were offering the stuff from all sides of the pit.
1t was a concerted "bear" movement, to all ap-
pearances, which the clique was lot prepared TO
meet. At SOs cents July found some sustaining
orders, and half an hour after the opening it had
reacted from S02 cents to 81. cents and was more
steady.
The panic resulted in the failure of Maurice
Rosenfed & Co.. Hamill & Brine and E. w.
Bailey & Co., and in the serious embarrassment
of c. J. Kershaw & Co. Settling clerks. mes
senger boys and anxious brokers focked into
the office of the latter firm this afternoon, to in
quire for statement from tie firm of its stand
ing, but no statement could be obtained.
This evening the firm caused it
to be announced that it
expected that funds would be forthcoming
tomorrow to pay all differences. 1t is believed
that, should Kershaw s. Co. fail to meet their
obligations tomorrow. not less than twelve we'll
known firms will 60 down,
In speaking Of the break. Secretary George f.
Stone, OF the Board of Trade, said it mat
ter of great surprise that moro failures
did not result The trade generally, he
thought, had kept itself we'll protected.
aud had shown remarkable frnness in view of
the severity of the shock. AS much business
was done on Change to-day as would, ordinarily,
be done in an entire week.
Mr. Hamll, ST., member of tho suspended
firm of Hamill & Brine. said that the drop came
so quickly shat they did not have time to call or
collect margins. The closing ont of all trades and
their temporary suspension were for the purpose
of self-protection. The clerks we're working
the books and settlements would be made, he
declared as fully and quickly as possible.
E. W. Bailey, whose house failed said the
whole thing unexpected that they had
not time to realize what had taken place before
the bottom struck. They were called for
about 900 margin. and called their customers
for about so 900. They would not be able to
tell how they stood until tomorrow.
Joseph Rosenbaum s. Co is one of the firms
whose fate depends on the solvency of Kershaw
& Co. They are long 100000 bushels of wheat
at 92c; their loss win approximate $40, 900. and
unless csrtaiu differences are paid them by
Kershaw it is expected they will go to the wall
President A. NJ. Wright of the Board of
Trade, said that the break to-day was the big
gest and most rapid he had ever seen on Change
save, perhaps, on the occasion of John B. Lyons
g. Co.'S failure, in 1872 when wheat broke right
off from 81. Go to 81. 13 per bushel.
Wiltshire, the supposed leader of the Cincin-
natl clique. was hore on Saturday, Sunday and
Monday, and it was we'll known among the ''shorts"
that repeated interviews occurred between
him and his Chicago brokers at the Hotel Richie
lieu and. in consequence, the latter were closely
watched. Kershaw noticed leaving the last
conference on Monday night in such troubled
spirits that certain of the watchful shorts"
scented the trouble, and as soon trading began
this morning acted upon their Impressions"
Leopold Bloom, who has gained considerable
notoriety as a scalper, is said to have cleared
$50. 600 on the decline.
The break did not seriously affect the bucket
shops. Some of them lost money, but not
enough TO close them up.
Although the excitement was intense in the
pit when the crisis came. it had a different as
pect from that which characterized the breaks
IN previous corners. Heretofore everybody
would crowd toward the middle of the pit. seem
iugly thinking that nothing could be done unless
others should revolve around him to transact
their business. To-day. throughout both
sions. the pit was in good free working condi-
tion. there being plenty OF room to move about,
and traders could enter their trades
their cards without jostling and pushing.
For some time this could not be explained, until
it was shown that the changes iE the market
could be known in any part of the pit or room
by simply watching the indicators the gal
lerv, thus relieving actual traders from the
presence of the excited crowds who simply want
nd 0llOuu ha nf hat Nhai irTi oaf.
worked to charm, recording the repeated
changes with rapidity and accuracy that
astonishing, especially so when the reporters of
the quotations were as excited as the throng be-
fore them.
When Lyman j. Gage vice president of the
First National Bank, was asked as to the possi-
BILE effect of the break in wheat upon the banks
of the city, he remarked that it would not have
any serious effect. because loans made by the
banks grain were always made with margins
large enough to make them absolutely secure.
For that reason any unfavorable effect upon the
banks would be slight indeed. Similar views
were expressed at other banks, President Walsh
of the Chicago National. adding that result
would be the release of quantity of money
that had been tied up in wheat. 1t is generally
understood that the local banks have been loan
ing money freely the CLIQUE operators
wheat at 20 cents per bushel, believing that fig
ure to be far below the actual value of wheat.
At the close of the afternoon session of the
Board of Trade. to-day. the following announce
ment was read
Gentlemen-We have assurances of ample funds
to all calls upon by morning and
request that trades with be closed
G. j. kERsfAW q Co.
This firm will be recognized as leading brok-
ers for the clique. The announcement did much
to strengthen the feeling the close of Change,
and it is rumored that the banks, in
protect themselves, have come to the assis tance
of Kershaw in order to prevent further decline
to morrow.
AT NEW YORK
a af Tnur in he pr duc TyN1
How Panic Was Checked
Special to the Indianap polls Journal